Maldives thanks India for offering $50 million financial support

Male, May 12 (IANS) Maldives, on Monday, expressed gratitude to India for offering a Government Treasury Bill of $50 million, which has supported the island nation in its fiscal reform efforts towards economic stability.

Maldivian Foreign Minister Abdulla Khaleel thanked External Affairs Minister (EAM) S. Jaishankar and the Indian government for offering the timely financial assistance.

"I express my sincere gratitude to EAM S Jaishankar and the Government of India for extending crucial financial support to the Maldives through the rollover of the $50 million Treasury Bill. This timely assistance reflects the close bonds of friendship between the Maldives & India and will support the government's ongoing efforts to implement fiscal reforms for economic resilience," Khaleel posted on X.

On the request of the Government of Maldives, the State Bank of India (SBI) has subscribed, for one more year, a $50 million Government Treasury Bill issued by the Ministry of Finance of Maldives, said the High Commission of India, Maldives in a press release.

"Since March 2019, Government of India has been facilitating subscription of several such Treasury Bills by the SBI and rolling them over, annually, interest-free to the Government of Maldives. This has been done under a unique Government-to-Government arrangement, as emergency financial assistance to Maldives," it stated

India considers the Maldives as a key maritime neighbour and an important partner in its 'Neighbourhood First' policy and Vision 'MAHASAGAR' i.e. Mutual and Holistic Advancement for Security and Growth Across Regions.

"India has assisted Maldives in times of need and the subscription of this Treasury Bill, along with, the Government of India's decision earlier this year to extend the special quota for export of essential commodities for Maldives, reflect India's continued support to the Government and the people of the Maldives," it further added.

In February, the Ministry of External Affairs (MEA) allocated Rs 5,483 crore for aid to foreign nations, slightly higher than last year's Rs 4,883 crore, which was announced in the Union Budget 2025-26.

The Maldives received the maximum increase in assistance, from Rs 470 crore in the revised 2024-25 budget to Rs 600 crore in 2025-26.

In January, EAM Jaishankar, during his meeting with Abdulla Khaleel, said that the Maldives remains a "concrete expression" of India's 'Neighbourhood First' policy and New Delhi has always stood by the Indian Ocean archipelago, especially when it comes to giving financial support during challenging times.

"We have increased our engagements in various sectors, and I want to emphasise that India has always stood by the Maldives. You are a concrete expression of our 'Neighbourhood First' policy," said EAM Jaishankar.

Khaleel, on his part, had appreciated the timely emergency financial assistance extended by India to Maldives in times of need, reflecting India's role as the "First Responder" of Maldives.

He reaffirmed the Maldivian government's firm commitment to work closely with the Government of India in realising the Joint Vision for India-Maldives Comprehensive Economic and Maritime Security Partnership.

--IANS

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